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Chapter 5. Priority Projects

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Chapter 5. Priority Projects The Study on Project Priorities to Upgrade Performance and Capacity of ASEAN Network Ports Chapter 5. Priority Projects 5.1 Viewpoint for Evaluating Priority Projects All the projects listed in the short list aim at realizing integrated and competitive maritime transport in the ASEAN region. In this study, urgency, importance and efficiency of each project shall be emphasized when evaluating the projects. Furthermore, Classification of types of ports and roles in the network, and policies for port development of each country will be considered in evaluating priority projects. Analysis of the contents of the short list of projects ・ Urgency: responding to demand, larger vessels and others ・ Importance: effects on regional development, roles in the maritime network others ・ Efficiency: operational efficiency, effects of the project and others Analysis of projects by port Hearings of the policies types from member countries Roles of projects for ・ Characteristics of ports ・ Workshop in Hanoi strengthening the network ・ Significance of improving ・ 20th MTWG functions ・ Site Surveys The conceptual procedure for evaluating priority projects is shown in Figure 5.1-1. Each project has different characteristics in terms of urgency, importance and efficiency, so that projects were compiled by their contents and features. Furthermore, it should be noted that some project names have been altered after obtaining more detailed data at the time of the site surveys and other information. Projects in the Short List Efficiency of Effects Scale Cargo Roles in Regional Port Operation, Vessel Size on Regional of Investment Demand Transport Corridor Procedure etc. deployed Development Terminal Capacity Improvement of Cost-Benefit Shortage of Scale of Smoothness of Scale of Benefits Productivity Analysis Port Facilities Port Facilities Transportation in Hinterland Evaluation of Efficiency Evaluation of Urgency Evaluation of Importance of a Project of a Project of a Project Roles in ASEAN Port Type Maritime Network Overall Evaluation Comments of Member Countries Priority Projects Figure 5.1-1 Conceptual Evaluation Flow for Priority Projects 5-1 The Study on Project Priorities to Upgrade Performance and Capacity of ASEAN Network Ports 5.2 Evaluation of the Priority Projects 5.2.1 Analysis of the Projects Projects included in the short list are analyzed in terms of urgency, importance and efficiency in this section ① Construction of New Phnom Penh Container Terminal: Phnom Penh port (Cambodia)-Type-5 This project is to develop a container terminal downstream from the present Phnom Penh port. Urgency The number of handling containers at Phnom Penh port has been rapidly increasing in recent years and the capacity of the present terminal will be exceeded in the near future. Furthermore, large scale container terminals in Cai Mep and Thi Vai area of Ho Chi Minh port have started operation, and the container handling volume of Phnom Penh port is expected to increase greatly because of its geographical location. Therefore, increasing the container handling capacity is an urgent issue. Table 5.2-1 Container Handling Capacity and Demand Forecast (unit: thousand TEUs) Actual Throughput Demand Forecast Capacity in 2008 2010 2015 2020 73 47 58 125 244 Source: Capacity & Demand Forecast: the study on Measure 7,Actual Throughput: PAPP Importance The present terminal was not designed for handling containers and thus a dedicated container terminal is requested in terms of handling efficiency, cost reduction and safety improvement. Most of container cargoes come from and go to the vicinity of Phnom Penh areas, so that an increase of container handling capacity of Phnom Penh port will reduce transport cost. Furthermore, because the new terminal is being carried out in a new site, this project will ease traffic congestion around the present port. Therefore, this project is recognized to be a highly important project. Efficiency There are two transport routes for shipping to the United States. One is to use Sihanoukville port by road, the other is to transship at Cai Mep port in Ho Chi Minh using Phnom Penh port. The latter route is estimated to reduce transport cost to US$100 to 200 per container and lead time of 2 to 3 days. Furthermore, the project site is away from the city center and has an advantage in terms of access. Therefore, this project is recognized to be highly efficient. ② Enhancement of Container Handling Productivity: Sihanoukville (Cambodia) -Type-4 This project is to install equipment for handling containers to improve operational efficiency. Urgency The first container terminal in Cambodia started operation in 2009 by Port Autonomous of Sihanoukville (PAS). It is necessary to realize high productivity of cargo handling and efficient terminal operation. Furthermore, in the midst of the changing container distribution structure in Cambodia because of opening of the Cai Mep container terminal in Ho Chi Minh port, it is an urgent 5-2 The Study on Project Priorities to Upgrade Performance and Capacity of ASEAN Network Ports issue to establish competitive operation and management. Table 5.2-2 Container Handling Capacity and Demand Forecast (unit: thousand TEUs) Actual Throughput Demand Forecast Capacity in 2008 2010 2015 2020 258 259 256 344 456 Source: Capacity: the study on Measure 6, Actual Throughput: PAS, Demand Forecast: the study on Measure 7 Importance Sihanoukville port is the only deep sea port in Cambodia. It is very important for Cambodia that Sihanoukville port provides efficient cargo handling and becomes an effective terminal to reduce transportation cost and strengthen the international competitiveness of industries. Special economic zones developed and/or being planned in the vicinity of the port are basic infrastructure and of great worth for business activities. Efficiency Increasing the efficiency of handling cargoes in the terminal leads to a reduction in cargo transportation cost and lead time so that businesses using the port receive big benefits. Improving operational and management know-how of PAS personnel will also yield great effects for effective utilization of port facilities. Therefore, this project is recognized to be highly efficient. ③ Transfer the Old Jetty to Passenger Terminal: Sihanoukville (Cambodia) -Type-4 This project is to convert the old jetty to a passenger terminal and establish a new passenger terminal with international standard. Urgency Sihanoukville port does not have a dedicated terminal for passengers and is required to develop one to cope with increasing passengers in the near future. Therefore, this project is recognized to be an urgent project. Table 5.2-3 Demand Forecast for Passenger at Sihanoukville port (unit: person) Year 2008 Year2010 Year 2015 Year 2020 12,000 24,518 90,715 143,499 Source: the study on Measure 7 Importance Sihanoukville port is the only deep sea port and is able to accommodate large international passenger ships. Upgrading its function to meet international standards for a passenger terminal is very important for development of the tourism industry in Cambodia and will bring lots of benefits to the tourism industry. Furthermore, the purpose of this project is in line with the government’s policy which is aiming at promoting international tourism. Therefore, this project is recognized to be highly important. Efficiency This project is to convert an old jetty which has already deteriorated to a terminal for passenger 5-3 The Study on Project Priorities to Upgrade Performance and Capacity of ASEAN Network Ports use only. However, this jetty was constructed in 1959 and is in a severely deteriorated state. Therefore, the precise state of deterioration should be evaluated and then it can be determined whether or not it can be converted to a passenger terminal. ④ Expansion of Container Terminal: Belawan port (Indonesia) -Type-3 This project is to expand container terminals to increase container handling capacity. Urgency The balance of demand and capacity of container cargo in Belawan port is tight and there will be a shortage of container handling capacity in the near future. Therefore, increasing container handling capacity is an urgent issue. Table 5.2-4 Container Handling Capacity and Demand Forecast (unit: thousand TEUs) Actual Throughput Demand Forecast Capacity in 2008 2010 2015 2020 721 590 609 1,044 1,526 Source: Capacity: the study on Measure 6, Actual Throughput: PELINDO I, Demand Forecast: the study on Measure 7 Importance Belawan port faces the Malacca Strait and has strong connections to the world class transship ports. Furthermore, Belawan port is a base port in the northern Sumatra region. Therefore, this project is recognized to be an important project. Efficiency According to the report conducted by the Islamic Development Bank, the economic rate of return for expansion of container terminal phase I is around 19% and the Phase II project is expected to yield a similar result because the scale of the project is almost the same as that of the phase I project. Therefore, this project is recognized to be highly efficient. ⑤ Container Terminal Development Project: Tanjung Priok port (Indonesia) -Type-2 This project is to develop new container terminals to increase container handling capacity. Urgency The handling capacity of container cargo in Tanjung Priok is tight and there will be a shortage of container handling capacity in the near future. Therefore, increasing handling capacity is an urgent issue. Table 5.2-5 Container Handling Capacity and Demand Forecast (unit: thousand TEUs) Actual Throughput Demand Forecast Capacity in 2008 2010 2015 2020 5,085 3,984 3,864 5,861 7,575 Source: Capacity & Demand Forecast: the study on Measure 7, Actual Throughput: PELINDO II 5-4 The Study on Project Priorities to Upgrade Performance and Capacity of ASEAN Network Ports Importance Tanjung Priok port is the biggest port in Indonesia and its hinterland is large. This port needs to play an important role in stimulating economic growth. Therefore, this project is recognized to be an important project. Efficiency Efficiency of the existing terminals in Tanjung Priok port is relatively low among type 2 ports.
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